Exchanging US Dollars for Euros?

Credit cards give the best exchange rate, although most charge foreign transaction fees of up to 3%. Check with your credit card companies. For cash it's best to withdraw euros at ATM machines in Italy (called Bancomat) using your bank ATM card. Your bank may charge you fees of up to $5 per withdrawal + foreign transaction fees of up to 3%. Check with your bank(s). The worst exchange rate is generally at exchange bureaus in the US, especially inside airports.

If you want a little cash before you go, a major bank can sell you some, usually for 5-10% over the actual interbank rate. AAA also sells euros for about the same amount. Otherwise, your ATM/debit card will always give the best rate (1-4% total fees). Actual for-profit exchange agencies charge over 10%. Keep in mind that many places/banks claim "no fees" but will still make their profit on poor exchange rates. Make sure you notify your bank and credit card companies of your trip. Often your bank will raise your daily withdrawl limit if you ask (cuts down on fees if you can withdraw lots of cash fewer times). Also, don't use your credit card for cash, interest charges start right away. Don't use your debit card for purchases, the temporary inconvenince risk is too high if someone steals your number while traveling.

I always just go to an ATM in the airport when I arrive and get some euros. I use ATMs to get euros during the whole trip. Sure, I pay a small exchange rate. For example I just returned from a month in Italy and used ATMs extensively. When I looked at my bank stmt - I see that I paid $25 US in fees to my credit union for using my ATM for the whole trip. I try to pay cash for everything while traveling and consider this $25 just part of the cost of the trip.
No regrets.

This is one of the most frequently asked questions on this board. Go to the FAQs which are found permanently as the very first topic on this board.

Credit cards give the best exchange rate, Only on purchases. If you use a credit card at an ATM you will pay, pay, and pay some more. It will be treated as a high interest cash advance with the fees accruing from the moment the cash touches your fingers.

I just returned from our yearly month long trip to Europe - our 10th year. We
ALWAYS use a DEBIT CARD tied to a CHECKING ACCOUNT at a local credit union in ATM machines once we arrive at our final airport in Europe. We always wait until we arrive there to get local currency. I have checked my credit union account and see that the total fees for all of our transactions this year was only a 1% make-up, as it always has been. We do often come home with very few euros to save for next years trip.

I usually exchange $400 or so for euros locally in the U.S. just so I have money when I get there and won't have to worry about finding an ATM, especially when tired from the flight. We then use our debit cards to get cash throughout the trip. If you are able to take 2 debit cards for your account, it's a good idea in case one gets "eaten" by the ATM. We always notify our bank & credit card companies that we'll be travelling so they won't assume suspicious activity and we ask the bank to raise our per day withdrawal limit so we can take out more money. I use my credit card if we are running low on euros or for larger purchases (i.e. to pay the hotel invoice). Have a great trip.

If you insist on taking euro's...AAA waives the service fee of (about $12) if you purchase over $1000. Bank of America debit card withdrawals are free at BNL ATM's. And the Capitol One Venture card doesn't charge any fee for purchases other than normal interest.

When you exchange dollars for a foreign currency, the exchange rate you get is (much) more important than any service fee. Many low or no fee vendors will nail you with an exorbitant exchange rate. That's how they make their profits. The best exchange rate will always be from a bank-owned ATM in the country you're visiting.

The last time I checked AAA (about two years ago) they were waving the service fee - Sure - but charging an 8% mark up on the exchange rate. Hardly a good deal. Their "travel pack" of currency was 10% with all the fees added in.